Is A Mortgage Right For You?

Buying should be a no-brainer, right? For many, building equity over time instead of "throwing money away" on rent seems like an easy decision. But owning a home requires a great deal of maintenance, funds, and stability. So begin your home buying process by asking yourself, "Am I really ready for a mortgage?"

Use the general pros and cons outlined below to evaluate your readiness to buy. Every investment presents trade-offs and home buying is no different, so weigh your decision carefully.

Buying Pros

Buying Cons

Build equity with each mortgage payment. Considerable down payment often required.
Mortgage payments will not fluctuate like rent. Insurance often required, which may rise.
Free to modify the home's interior and exterior. HOAs may impose limits on modifications.
Tax deductions may be applicable. Property taxes must be paid and may rise.
Appreciation means profit if/when you sell. Limited mobility.

 

The Affordability Calculator (filed under Mortgage Calculators on your side menu) is another helpful resource which can help you determine your financial readiness for a mortgage.